JF SmartInvest Holdings Ltd (JF SmartInvest) has released a profit warning for the six months ended 30 June 2026, flagging a steep contraction in earnings on the back of sharply lower revenue.

During the reporting period, gross billing is expected to reach RMB 1.68 billion, 1.5% below the RMB 1.71 billion recorded a year earlier. Management attributed the mild decline to a temporary halt in new-client acquisition by a key subsidiary from 9 February 2026, which shifted billings toward repeat purchases; these accounted for more than 80% of major-product sales. The subsidiary has since resumed onboarding new customers.

Because the Group recognises revenue from major products in instalments over the subscription period, most repeat purchases booked in the first half have not yet initiated service delivery. Consequently, revenue is projected to fall 38.1% year on year to RMB 1.30 billion (H1 2025: RMB 2.10 billion). Deferred revenue surged: contract liabilities stood at RMB 1.89 billion at end-June 2026, up 133.6% from RMB 808.90 million a year earlier, and are slated for recognition mainly in 2026-2027.

Profitability is set to drop markedly. Non-HKFRS adjusted net profit is estimated between RMB 107.0 million and RMB 117.0 million, roughly 88% lower than the RMB 912.50 million posted in the prior-year period. Net profit attributable to shareholders is forecast at RMB 25.0 million–RMB 35.0 million, compared with RMB 865.40 million a year ago, a decline of about 96%. While revenue fell, costs and expenses remained broadly stable as the Group continued investing in product upgrades and team expansion to diversify its revenue mix.

JF SmartInvest is finalising its interim results, to be published by end-August 2026. Figures in this announcement are based on unaudited management accounts and may be revised. Investors are advised to exercise caution when dealing in the company’s shares.